The Bank of Japan (BoJ) has maintained its assessment of economic conditions in the country for February for the third month in a row, saying activity remains flat due to substantial uncertainty over the outlook for the economy. The BoJ upgraded its assessment of imports and exports, stating that growth in both imports and exports is increasing. It previously said growth was level. Export growth should help to reignite the economy this year, although foreign demand for the country's goods, particularly in the US, could ease if war breaks out in Iraq.
"Overall, assuming that overseas economies recover in 2003 ,the increase in exports will accelerate and the uptrend in production resume sooner or later,which in turn will initiate momentum for a recovery," the bank said. However, it added that that the economy will not show clear signs of recovery for some time as production is expected to be barely changed. ///www.fxcentre.com